The Synthetic Biology Revolution - Investing in the Science of Sustainability

What You Need to Know

The revolutionary technology of synthetic biology is poised to make a profound impact on the way a vast array of products are manufactured, from lab-grown meat to cosmetics to biodegradable packaging. Yet investors are paying relatively little attention to the huge business potential. In this paper, we explain the science and show how its growing impact on more industries will create exciting opportunities for equity investors.

If the technology for making diabetes medicine hadn’t changed since the 1930s, today we’d need an area larger than the surface of the earth for raising pigs, harvesting insulin from their pancreases to help hundreds of millions of diabetics around the world.

That isn’t necessary because of a breakthrough in the 1970s: the invention of synthetic biology. Scientists at start-up Genentech found that inserting the human insulin gene into a yeast cell encouraged the production of that critical protein for treating diabetes. This pioneering application of synthetic biology spawned the biotechnology industry, which now harnesses the power of DNA to produce a growing number of life-changing medicines.

Today, we’re just scratching the surface of this revolutionary technology. What started in the healthcare industry is expanding into many sectors. Over time, synthetic biology is likely to make a profound impact on our world by changing the way a vast array of products are manufactured, from lab-grown meat to cosmetics to biodegradable packaging. McKinsey estimated in a May 2020 report that as much as 60% of the global economy’s physical inputs could be made using synthetic biology, resulting in direct economic benefits of at least US$1.7 trillion between 2030 and 2040 (Display, left).